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18.06.26
Prototype, MVP or proof of concept? Strategic product development in an industrial setting

In today’s fast-paced industrial landscape, efficient and targeted product development is crucial to success. But what is the right strategy when it comes to testing new ideas and turning them into market-ready products? Terms such as ‘proof of concept’ (PoC), Minimum Viable Product (MVP) and ‘prototype’ – but what exactly are the differences between them, and when should each model be used? At d.u.h.Group, we shed light on these concepts and show you how to optimise your product development strategy within an industrial context.
Definition of the three concepts
To clarify matters, let’s first take a look at the basic definitions:
- Proof of Concept (PoC): A PoC is a small, often internal project aimed at demonstrating the feasibility of a specific idea or technology. The aim is to validate the core assumptions and demonstrate that a particular function or approach is technically feasible. A PoC is generally not intended for the end customer and has no commercial value.
- Prototype: A prototype is an early model of a product used to test its design, functionality and user-friendliness. It can vary in level of detail, ranging from a simple ‘look-and-feel’ model to a fully functional precursor to the final product. Prototype development enables feedback to be gathered and iterations to be carried out before investing in mass production.
- Minimum Viable Product (MVP): An MVP is a version of a new product that has the absolutely essential core functions required to deliver value to the first customers and gather feedback. The aim of MVP product development is to get to market quickly, validate assumptions and iteratively refine the product based on real user behaviour. It is a genuine product that already has commercial value.
Differences in an industrial context
In an industrial context, particularly in mechanical engineering and manufacturing, these concepts take on particular significance:
- Industrial Proof of Concept: This often involves demonstrating the technical feasibility of complex processes, new materials or innovative automation solutions. Can a robotic cell perform a specific task with the required precision? Is a new sensor system reliable enough for use in harsh conditions? A successful industrial proof of concept minimises risks and builds confidence for further investment.
- Prototype development in mechanical engineering: Prototype development in this sector can range from a CAD model to a 3D-printed component and even a fully functional machine. Here, aspects such as ergonomics, ease of maintenance, performance under real-world conditions and integration into existing production lines are tested. Rapid prototyping technologies are playing an increasingly important role here in shortening development cycles.
- MVP product development for industrial products: An MVP in an industrial context could, for example, be a software solution for predictive maintenance that initially only collects and visualises the most basic data. Or a modular machine that initially offers only core functionality, in order to gather feedback from early customers and gradually expand the product.

When to choose which model
Choosing the right approach depends heavily on the stage of the development process, the objectives and the level of risk:
- Proof of Concept: Ideal in the early stages of ideation, when the aim is to test a technical hypothesis and minimise risks before investing significant resources.
- Prototype: Useful once technical feasibility has been demonstrated and the aim is to refine the design, functionality and user-friendliness. It serves as a basis for testing and for visualising the future product.
- MVP: The best choice if you want to get a product to market quickly in order to gather genuine customer feedback and develop the product iteratively. It is a cornerstone of agile development in mechanical engineering.
Link to Simulation & PLM
Modern product development is inextricably linked to digital tools. Simulation plays a crucial role in the virtual testing of concepts and prototypes long before physical models are built. This saves time and money and enables early optimisation.
Product Lifecycle Management (PLM) systems form the backbone of an efficient product development strategy. They manage all information and processes throughout a product’s entire lifecycle – from the initial idea through development, manufacturing and use right through to decommissioning. Data from PoCs, prototypes and MVPs is centrally recorded in the PLM system, enabling end-to-end traceability and informed decision-making throughout the entire engineering process.
A practical example from mechanical engineering
Imagine a mechanical engineering company wants to develop a new, more energy-efficient drive technology for its industrial robots.
- Proof of Concept: First, an industrial proof of concept is carried out to check whether the new drive technology can achieve the required performance and precision under laboratory conditions. This involves testing fundamental physical principles and algorithms.
- Prototype: If the PoC is successful, an initial prototype of the drive train is built. This is tested on a test bench under realistic conditions to assess durability, temperature behaviour and noise levels. Rapid prototyping allows different material combinations to be tested quickly.
- MVP: Following a successful prototyping phase, an MVP is developed: a robot cell equipped with the new drive system, capable of performing a core function (e.g. the precise gripping and placement of a component). This cell is installed at a selected customer’s site to gather feedback on performance, maintenance and user-friendliness in a real production environment. Based on this feedback, the product is iteratively developed into a fully-fledged series production solution.

Get in touch!
Whether it’s a proof of concept, a prototype or an MVP – each of these concepts has its rightful place in strategic product development within the industrial sector. The d.u.h.Group supports you in selecting the right models for your innovation projects and implementing them efficiently. With a well-thought-out product development strategy that integrates agile methods and digital tools such as simulation and PLM, you can secure your competitive advantage in mechanical engineering and beyond.
Topics
Technologies
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